Install solar panels through Octopus Energy using our referral link and receive a £100 gift card after your installation completes. Updated March 2026.
Solar panels convert sunlight into electricity using photovoltaic (PV) technology. Here's how the process works in a typical UK home installation.
Photovoltaic cells in each solar panel absorb photons from sunlight. Each cell is made from semiconductor material (typically silicon) that releases electrons when struck by light, generating a direct current (DC).
The DC electricity flows to an inverter (or microinverters on each panel), which converts it to alternating current (AC) — the type used by your home's appliances and the national grid.
The AC electricity powers your home directly. Any appliances running during daylight hours draw from your solar generation first, reducing the amount you import from the grid.
Surplus electricity is either stored in a home battery for evening use, or exported to the national grid. With Octopus's Outgoing tariff, you earn 12p/kWh for every unit you export.
A typical Octopus Energy solar installation includes everything needed for a complete, grid-connected system:
Octopus Energy offers transparent, all-inclusive pricing for solar installations. All prices include labour, delivery, scaffolding and a 5-star aftercare service.
| System | Panels | Battery | Price | Best For |
|---|---|---|---|---|
| Entry Solar | 2 panels | No battery | From £6,163 | Small homes, starter systems |
| Solar + Smart Battery | 8 panels | 5kWh smart battery | £8,518 | Average homes, maximise self-use |
| Solar + Optimised Battery | 8 panels | 5kWh optimised battery | £9,691 | Maximise export earnings + savings |
| Custom System | Tailored | Optional | Quote required | Large homes, EV charging, high usage |
Finance available: Spread the cost with 4.9% APR over 2–3 years, or 9.9% APR over 5, 7 or 10 years through DivideBuy. A £500 non-refundable deposit is required on signing. 0% VAT applies to all solar installations.
Solar panels can significantly reduce your electricity bills. Here's a breakdown of the typical savings you can expect from an Octopus Energy solar installation.
| Saving Type | Estimated Value |
|---|---|
| Annual electricity bill reduction (solar only) | ~£400–£600/yr |
| Annual saving with solar + battery + Flux tariff | Up to £975/yr |
| Export earnings (12p/kWh, Outgoing Octopus) | Up to £300/yr |
| CO₂ saved per year | ~1 tonne |
| Typical payback period | 7–12 years |
| Referral gift card (one-off) | £100 |
Octopus Intelligent Flux tariff: Customers with solar + battery can save up to 85% on electricity bills by using the Intelligent Flux tariff, which automatically charges your battery during cheap overnight periods and exports during peak-price hours.
A typical 3-bedroom home with an 8-panel system and 5kWh battery in the South East of England:
Figures are illustrative estimates. Actual savings depend on system size, location, energy usage and tariff. Source: Octopus Energy, Energy Saving Trust, Good Energy.
Octopus Energy offers specialist tariffs designed to work with solar panels, helping you maximise your savings automatically.
The flagship solar + battery tariff. Features time-of-use pricing with cheap overnight import rates and premium export rates during peak hours. Your battery charges automatically overnight and exports when prices are highest. Customers with this tariff report savings of up to 85% on electricity bills.
A simple, flat export tariff paying 12p/kWh for every unit you send to the grid. No smart meter required. Ideal for solar-only customers without a battery who want a straightforward way to earn from their surplus generation.
A time-of-use import and export tariff for solar + battery households. Import electricity cheaply overnight (when the grid is powered by renewables) and export your stored solar energy during the evening peak. Managed automatically via the Octopus app.